Brazil, an Expanding Economy

Brazil, an Expanding Economy

Brazil, an Expanding Economy

Brazil, an Expanding Economy

Excerpt

There is no country in the world--including those in which technical development has made the most progress, such as the United States itself--in which capital, management, labor and resources may not be joined together for more production, to the mutual advantage of all concerned. That Brazil could use new investment, that a return could be paid to those who supply it, and that the Brazilian people could benefit from a wise and skillful employment of whatever funds may be available, is axiomatic. If American funds, energies and skills are to be used in Brazil, the special nature of the opportunity and the degree to which it is facilitated or hampered by the attitudes of Brazilians themselves, and the conditions under which American assistance would have to operate, should be widely known in the United States.

Leading Brazilians feel an urgent necessity for further development of their country. They are aware that this will require large amounts of new money capital, and that much of the essential equipment will have to be imported. Yet there are reservations in their willingness to accept capital or skills from abroad, and many restrictions are imposed on the ways in which resources may be used.

Also, the chronic inflation that has afflicted Brazil and the consequent currency depreciation have discouraged savings and investment and have been a source of high interest rates. These conditions have hampered the productive use of capital--both Brazilian and foreign. As the Brazilians themselves must provide by far the major portion of funds for the nation's development, it is to the domestic, even more than foreign, interest of Brazil for the government to create conditions more favorable to investment.

Until 1930 both immigrants and foreign investment were welcomed in Brazil. Total foreign investments were then estimated at $2,628 million, of which the British held slightly . . .

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